Supreme Court Of India – A Cheque issued from the account of guarantor as Security also would fall within the purview of Section 138 of NI Act

The security cheques also would fall within the purview of the Section 138 of NI Act and a person could not escape his liability, as such, when there is existence of debt on the date of presentation of the cheque and the security cheques issued are dishonoured, the accused would be liable under Section 138 of NI Act.

Amaresh Singh

Advocate Amaresh Singh is a practicing lawyer in Supreme Court of India, Delhi High Court and District Courts of Delhi including Saket Court, Tis Hazari Court, Patiala House Court, Karkardooma Court, Dwarka Court in the field of Civil, Criminal, Corporate, Industry & Labour Laws, Banking and DRT matters, Intellectual Property Rights (Trademark/Copyright) and related cases.